When is 'other revenue' recognized by Basecamp Fitness for billing purposes?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, 'other revenue' is recognized monthly when the company bills the franchisee or when services are rendered. This revenue category includes income from contracts for the use of Basecamp Fitness's trademarks and intellectual property rights, health insurance reimbursement processing fees, training and coaching fees, online membership fees, and optional local advertising.

For a prospective franchisee, this means that revenue from these various sources is not recognized all at once but is instead spread out over time, typically on a monthly basis. This approach aligns the revenue recognition with the actual billing cycle or the delivery of the associated services. For example, if a franchisee provides training services, the revenue is recognized as those services are delivered to customers.

This revenue recognition method provides a consistent and predictable income stream for Basecamp Fitness. It also ensures that franchisees are billed and revenue is recognized in a manner that reflects the ongoing value they receive from the franchisor's trademarks, intellectual property, and support services. Understanding this revenue recognition policy is important for franchisees to accurately forecast their financial performance and manage their cash flow.